Amid Federal Cuts, Recursion's Altitude Lab Launches Pre-Seed Fund

The recent turmoil surrounding federal research funding—including the NIH policy to cap indirect costs at 15%—has left many early-stage biotech startups in financial limbo. In response, Altitude Lab, a biotech accelerator founded by Recursion in Salt Lake City, has launched a pre-seed venture fund to support Small Business Innovation Research (SBIR)-reviewed startups affected by these funding disruptions.

The Altitude Lab Fund, anchored by Recursion CEO Chris Gibson, aims to provide capital, lab space, and mentorship to high-potential biotech startups that have received strong SBIR scores but face delays in accessing federal grants. Historically, SBIR and STTR programs provide around $4.5 billion annually to small biotech firms, but the uncertainty surrounding recent policy changes has put an estimated 1,500 health-related startups at risk, possibly jeopardizing advances in medicine, drug development, and diagnostics.

The fund will offer:

• $100,000–$250,000 in pre-seed investment capital
• 12 months of lab and office space at Altitude Lab
• Access to Altitude Lab’s accelerator program, including mentorship from industry leaders and connections to national investors

Chris Gibson highlighted that SBIR funding played a pivotal role in Recursion’s early growth:

“Earning our early SBIRs was a pivotal moment for Recursion. The few million dollars that came in via the SBIR mechanism in our early years allowed us to build the fundamentals of our platform, upon which we have now raised over $1B in private investment to turn Recursion into a $4B publicly traded company with eight therapeutics in clinical development.”

Chandana Haque, Altitude Lab’s executive director, emphasized that the fund is designed not only to sustain biotech innovation in the U.S. but also to support underrepresented founders:

“Federal funding disruptions are stalling groundbreaking biotech research. With this fund, we are doing our small part to help secure the future of biotech innovation in America, to build the ecosystem of life science companies around Recursion in Salt Lake City, and also ensuring that the best female and underrepresented founders—who receive only 15% of SBIR funding and 3% of venture capital—have an opportunity to build the next great biotech.”

David Bearss, CEO and cofounder of Halia Therapeutics, and one of the fund’s leaders, underscored the necessity of early-stage funding:

“Throughout my career—both as a faculty member and as a co-founder of eight biotech startups—I’ve seen firsthand how federal funding plays a critical role in advancing science and translating discoveries into life-saving medicines. Without early-stage support, many promising innovations would never reach patients. This fund is stepping in at a pivotal moment to ensure that the next medical breakthroughs don’t slip through the cracks.”

Salt Lake City has emerged as a growing biotech hub, with Altitude Lab-affiliated startups raising over $154 million in early-stage funding from 2020 to 2024. The new fund seeks to build on this momentum by attracting promising biotech startups nationwide to relocate and join the region’s expanding life sciences ecosystem.

The fund is led by Chris Gibson, serial entrepreneur David Bearss, and Chandana Haque. Startups are eligible for funding if they have received an Impact Score of 20 or less in a recent SBIR submission. 

Applications can be submitted at altitudelab.org/altitude-lab-fund.

Topics: Bioeconomy & Society